Economic Value Added (EVA) Is Similar to ROI in That

question 79

True/False

Economic value added (EVA) is similar to ROI in that it links net income to capital employed.

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Definitions:

Horizontal Flow

The movement of goods, information, or services across similar levels of an organization or among departments without a hierarchical order.

Expertise

A high level of knowledge or skill in a particular area or field.

Divisional Structure

An organizational framework where operations are segmented based on products, services, or geographical markets.

Multidomestic Company

A firm that operates in several countries and tailors marketing strategies and product features to each, recognizing the diversity of international markets.